Hang Seng was down 3.87% by Monday afternoon, China Evergrande Group shares tumbled nearly 17%, and Hang Seng Properties dropped to a 52-week low.
The MSCI Asia Pacific Index outside Japan fell 1.8%. Markets in mainland China, Japan and South Korea are closed on Monday for holidays.
Since the beginning of 2018, the Chinese giant has defaulted on debts of more than 4 billion dollars, and the crisis has begun to snowball.
Before the Corona pandemic came to deepen the crisis of Evergrande, which in late 2020 offered discounts on its units and properties by 30% in an attempt to attract customers. But the company’s efforts to get rid of the scattered papers did not work.
The company’s stock fell over the course of 2021 by about 85%, and with the exacerbation of the crisis, Evergrande’s stock in the last five sessions only lost 40% of its value.
This comes as China, for its part, is trying hard to control the crisis by injecting $14 billion into the banking system to provide liquidity. In return, the company has mortgaged some of its property and equipment to secure the repayment of part of the loans.
Evergrande’s debt includes about 572 billion yuan in loans from banks and other financial institutions, plus 240 billion yuan maturing in less than one year.
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